According to the Insurance Information Network of California, after a disaster “for many families, survival and recovery may depend on a carefully crafted household disaster plan,” including preparing your family and your finances.
Protecting your family starts with some simple measure ranging from an emergency evacuation plan, to an out of town contact, to having three or four days of food and water. The Safe and Secure recommendation is 1 to 2 weeks nonperishable food and bottled water.
Preparing your finances starts with some equally simple steps like creating a home inventory and keeping copies of insurance papers in a safe place outside your home. The Safe and Secure reminder is that it needs to be a place that won’t be affected by a disaster that affects your home. Will a safe deposit box in a New Orleans bank be worth much to a homeowner not allowed into the city to retrieve its contents or who arrives to find the papers scattered by looters? It might be worth considering keeping an extra copy of the most important documents with family, friends, an attorney or someone else you trust out of state.
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After any disaster there are always human vultures circling ready to use people’s generosity to line their own pockets. This double crime victimizes the donors and those who could have used the help. Don’t be taken in by these scams.
- Don’t give money to people collecting door-to-door that you don’t know.
- Don’t respond to email solicitations asking for donations. These solicitations may appear to be from real charities but actually send your money to fraud artists.
- Give through a known and trusted channel, such as a well established charity.
Some legitimate places to give, so you know your money will go where it’s needed most:
- Give through your church.
- Some local banks will set up donation accounts. Call your bank and ask if they are doing anything to help their customers donate.
- The Salvation Army is working hard feeding first responders and victims.
- United Way has a Hurricane Response Fund.
Forbes looks at The Most Expensive States To Insure Your Home 2005 and gleans a few lessons other than the obvious - move to a cheaper state to save on insurance.
“Insurance is really based on looking at the past,” says Griffin. When determining premiums, insurers look at claim trends on a broad basis, such as state and regional levels, and as closely as a ZIP code or even a street. Companies then begin with an average price for premiums, depending on how expensive it has been to fill claims in a location.
Insurers look to the past to determine risk and how the type of home will withstand the most likely risks. For example, brick homes may stand up better to wind or fire, but they suffer expensive to repair cracks in even minor earthquakes.
Insurance is often our primary financial defense against threats to our safety and security, but USA Today reminds us that Car renters often overdo insurance.
Thousands of people will rent cars as Labor Day approaches and summer wanes. But many will pay more than they need for policies covering everything from car damage to stolen items.
- Check your own comprehensive and collision policy to see if it covers you when driving a rental.
- Check your credit card to see if it includes protection, but also be sure to check the restrictions, such as time or damage amount limits.
- If you do buy supplemental insurance, follow its rules. Speeding, drinking and driving and even driving on a gravel road can void the coverage.
Ameriprise Auto and Home Insurance, a division of Ameriprise Financial formerly American Express, is now offering $5,000 of free identity theft protection to all policyholders. The coverage is for expenses including credit reports, lost wages, attorney and court fees, application costs to refile loans, fraudulent fund withdrawals and miscellaneous costs like postage, long distance calls and photocopies. Over 10 million Americans were victims of identity theft last year and it is considered the fastest growing financial crime.
Identity Theft Protection Now Offered by Ameriprise Auto & Home Insurance
The thirty year US Treasury bond, discontinued 4 years ago, will again be available next year. Investors may want to consider the 30-year Treasury in a portfolio including shorter maturity bonds from 2 years on up in order to always have some bonds near maturity. “Bottom line: When the 30-year bond is offered next year, it will be worth a close look.” Treasury securities don’t have the default risk of corporate paper, but they still have interest rate risk. With longer term bonds like the thirty year even a small increase in interest rates can significantly hurt the price of the bond in the secondary market, so it’s best to plan based on holding the bond to maturity.
The thirty year US Treasury bond, discontinued 4 years ago, will again be available next year. Investors may want to consider the 30-year Treasury in a portfolio including shorter maturity bonds from 2 years on up in order to always have some bonds near maturity. “Bottom line: When the 30-year bond is offered next year, it will be worth a close look.” Treasury securities don’t have the default risk of corporate paper, but they still have interest rate risk. With longer term bonds like the thirty year even a small increase in interest rates can significantly hurt the price of the bond in the secondary market, so it’s best to plan based on holding the bond to maturity.
Financial Security in Troubled Times: What You Need to Do Now presents an eight-point action plan, all things you can do right now to protect your home, your family, your assets and your income. The best time to to plan for trouble is before it happens. This book will help you prepare for, prevent and weather troubled times.
Ric Edelman is donating 100% of his profits from the sale of Financial Security in Troubled Times: What You Need to Do Now to relief efforts and other charities. Edelman’s goal is to raise $500,000 through sales of the book.
